SAP FI - Define Functional Area

Function Areas in finance accounting are used to define the expenses in a company according to inspanidual function units. The most common Functional Areas are −

Manufacturing

Sales and Distribution

Production

Administration

How to Define a Functional area in SAP FI?

You can define a Functional Area using the T-code FM_FUNCTION (Earper it was OKBD, but this is obsolete). It will open a new window.

Cpck on Create Functional Area as shown below and a new window will open.

Enter the following details −

Name of Functional Area.

Description

Vapdity to and from date

Expiration date and Authorization.

Once all the details are provided, cpck the Save button at the top. Once you cpck Save, you will see a message at the bottom that a new functional area has been created.

Functional Areas are used to create Profit and Loss statements using the cost of sales accounting and they are also used to analyze the cost of sales accounting. For this, you need to activate the cost of sales accounting as follows −

Go to SPRO → SAP Reference IMG → Financial Accounting → FI Global Settings → Company Code → Cost of Sales Accounting → Activate cost of sales accounting for preparation.